THE Federal Government is drafting laws to allow Qantas to be majority foreign-owned but is refusing to say what other support it will give the airline.

The move comes as Qantas gears to axe 5000 jobs and sell its terminal at Melbourne Airport to prove to the Abbott Government it can make the tough business decisions required to obtain federal assistance.

Transport Minister Warren Truss today revealed the Government was drafting changes to the Qantas Sale Act.

The airline has argued the Act — which restricts foreign ownership to 49 per cent — distorts the market and inhibits its ability to compete against Virgin Australia, which is majority owned by three foreign airlines.

“The Government is philosophically attracted to levelling the playing field,” Mr Truss said in Canberra.

Despite flagging changes to the Qantas Act, the Government is not saying whether it will offer assistance in the form of a debt guarantee.

Finance Minister Mathias Cormann would only say the Government was considering proposals put to it by Qantas.

“When we are in a position to make an announcement we will make an announcement,’’ Mr Truss said.

Qantas is set to cut jobs and sell its Melbourne Airport terminal.Source:News Limited

The airline may also take the razor to its budget offshoot Jetstar, slashing jobs and routes, as it lobbies the Government to provide it with a lifesaving debt guarantee.

Job cuts, previously forecast to be 2000, are now expected to be closer to 5000.

The Herald Sun has been told up to 1500 of those jobs could come from the executive and support divisions of the Qantas group.

A large number of jobs will be abolished by the end of March as the airline seeks immediate savings.

And at least 1000 of the 5000 jobs across the group will go in 12 months.

The national carrier will use Thursday’s announcement of half-yearly results to outline the ways is will slash $2 billion from its national budget over three years.

Final job numbers could change before Thursday.

A Qantas source said the numbers had moved “a bit every day’’ in recent weeks as decisions were finalised, but that the figure of 5000 had firmed up in recent days.

Prime Minister Tony Abbott said the Government accepted Qantas was having to compete with a legislative “ball and chain”.

“But in the end Qantas do have to get their own house in order,’’ he said.

Labor and the Greens have said they will oppose any changes to the Qantas Sale Act, fearing it will lead to local jobs being lost overseas and the closure of regional routes.

Opposition Leader Bill Shorten insists Australia should not “hand away a national icon”.

Greens deputy leader Adam Bandt said his party would not support legislation to provide Qantas with a debt guarantee unless jobs were protected.

“The Greens won’t be waving it through without looking seriously at how we can protect local jobs,” he said.

The Transport Workers Union has demanded the airline come clean on its restructuring plans.

“Another day, another rumour of massive job cuts and the sale of planes and terminals,’’ national secretary Tony Sheldon said.

Qantas spokesman Andrew McGinnes declined to put a number on job losses.

“There is lots of speculation about what things we will or won’t announce on Thursday, but we’re not in a position to comment on that speculation,’’ he said.

“We have said that we will be making some tough decisions in order to achieve $2 billion in cost savings over the next three years, which is a consequence of an unprecedented set of market conditions now facing Qantas.”

Qantas Group CEO Alan Joyce has issued his group executives a reduction figure to hit.Source:Supplied

With the airline already forecasting a loss of $300 million, a radical overhaul of operations is being finalised, with the company determined to show real reform in order to secure the debt guarantee it has been seeking from Treasurer Joe Hockey.

Qantas CEO Alan Joyce has given each group executive a dollar figure in reductions to achieve.

The airline has been negotiating to sell the long-term lease it holds on its terminal at Melbourne Airport, which could raise up to$250 million.

Sources said the airline would not announce anything relating to the future of its Melbourne lease on Thursday, but negotiations were continuing.

The sell-off of the Brisbane lease, which could raise about $150 million, seems set to be announced this week.

Budget offshoot Jetstar now seems likely to face similar cuts, with staff and routes under threat.

Qantas sources seem confident the Government will grant a debt facility, in return charging them a premium if they were to access it.